• Q2 profit down 17% to $9.2m
  • Revenue jumps 14% to $97.7m
  • Same-store sales fall 2%

Second quarter profit at Lululemon Athletica Inc, which sells yoga-inspired athletic apparel, managed to beat expectations despite falling by 17%.

Instead it focused on a 14% jump in net revenue to $97.7m, and a 9% rise in sales at company-owned stores to $85.1m. Same-store sales, however, fell 2%.

CEO Christine Day said the sales momentum "demonstrates the power of our brand as well as our innovative product offerings, effective market strategy and strength of our management team.

She added that gross margin improved over the first quarter, helped by "an operating model that is allowing us to operate with leaner inventory and therefore gain market share without resorting to markdowns."

The Vancouver based company said net income was $9.2m or $0.13 per share, for the three months to 2 August, compared to $11.1m or $0.16 per share in the same period last year.

Looking ahead, it sees third quarter same-store sales flat with last year. It is targeting revenue in the range of $95m to $100m and earnings per share of $0.11 to $0.13.

Earlier this month Lululemon said it is launching a new brand concept targeting tween girls as it looks for new ways to expand its business.